You Purchased 100 Shares of IBM Common Stock on Margin

question 53

Multiple Choice

You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

• A) $21
• B) $50
• C) $49
• D) $80

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